Wage Garnishments

If you are struggling to meet your monthly financial obligations, a wage garnishment can further impair your efforts to get out of debt.  In many instances, bankruptcy can provide immediate relief from a wage garnishment, and speaking with an attorney from The Los Angeles Bankruptcy Firm can be the first step to recovering lost funds from your paycheck.

What is a Garnishment?

A garnishment is one way in which a creditor may attempt to collect on a debt.  If you have stopped paying your bill, the creditor can obtain a court order allowing the creditor to garnish your wages.  This order is presented to your employer, who is then required by law to withhold the stated amount from your paycheck for the benefit of the creditor.

What Cannot Be Garnished?

Garnishment is limited to a percentage of disposable earnings. California wage garnishment laws essentially limit the garnishment to 25% of pay after required deductions and withholdings, although up to 50% or more of weekly wages can be garnished for certain child support payments, tax payments, and other matters. Certain income, such as social security and unemployment compensation, cannot be garnished, except by the IRS.

A Bankruptcy Stops a Garnishment

Filing for bankruptcy invokes an automatic stay on debt collection proceedings.  This includes wage garnishments.  If your wages are currently being garnished, and you file for bankruptcy, the garnishment will stop, and you should begin receiving your full wages again.  If the debt which was the source of the garnishment is dischargeable in bankruptcy, you may be able to have the debt completely erased by the bankruptcy court.

Call Today to Keep Your Wages...and Your Job

If your wages have been garnished by one of your creditors, chances are you may be having difficulty meeting other financial obligations as well.  While your employer is prohibited by law from firing you because of a wage garnishment, it is still embarrassing when your employer becomes aware of your financial problems.  Before this happens, contact The Los Angeles Bankruptcy Firm for a free consultation to see if a bankruptcy solution may be an appropriate form of relief in your case.